7th Pay Commission Latest News: On the one hand, banks of common people are making EMI expensive by increasing the interest on home loans. In such a situation, the government is giving the benefit of cheap home loans to the Central Government Employees. With which they can make their home by taking advantage of cheap loans. In fact, the government has reduced the interest rates on Housing Building Advance for the financial year 2022-23. The Ministry of Urban Development has reduced the interest rate on Housing Building Advance (HBA) to 7.1 percent for the current financial year.
Housing Building Advance at 7.1%
The central government fixes the interest rate on housing building advance based on the yield (return) of 10-year government bonds. For central employees in 2021-22, where the interest rate on housing building advance used to be 7.9 percent, which was applicable for 18 months from October 1, 2020 to March 31, 2022. But now it has been reduced to 7.1 percent. Central employees can get their house constructed by taking Housing Building Advance.
You can take loan up to Rs 25 lakh
According to the recommendations of the 7th Pay Commission and Housing Building Advance 2017 Rules, the central can take a basic salary equal to 34 months or a maximum of Rs 25 lakh, whichever is less, as an advance for construction or purchase of a new house. Housing building advance is available at the rate of simple interest. According to the Housing Building Advance rule, the principal amount of the loan has to be repaid in 180 EMIs in the first 15 years, then the interest on the loan has to be paid in the payment of 60 EMIs in five years. Any permanent employee, temporary employee who is still in continuous service for five years can take Housing Building Advance to build a house. Housing building advance can also be taken to repay the loan taken from the bank.